Well, the camera/hand isn't shaking at all, so that's not the problem.
I'm not sure what exposure time means exactly. Is 0.8'' what you recommend I change it to or what it shouldn't be set at?
Others have answered your first statement (the one about camera/hand shake) for me more then adequately 
the .8'' was the exposure time of the photo you posted. I got that from the exif data that was still embedded in you photo. Others have checked as well which is where they got the 100 iso and other data. In any case, if you aren't using a flash, and are shooting without a tripod that shutter speed is way to slow to compensate for camera/hand shake.
Once you get a good grasp of basic photography techniques I am sure you will do fine.
A really good thread I stumbled across on POTN for this is here:
https://photography-on-the.net/forum/showthread.php?t=414088
Part 1 is specifically about aperture, shutter speed, and iso. A good read.
On a side note here is what my exif viewer shows about your photo:
[Image]
Make = NORCENT
Model = DCS-1050
Orientation = top/left
X Resolution = 96
Y Resolution = 96
Resolution Unit = inch
Software = Adobe Photoshop CS3 Windows
Date Time = 2009-11-08 19:04:19
YCbCr Positioning = co-sited
Copyright = Copyright 2007
Exif IFD Pointer = Offset: 244
[Camera]
Exposure Time = 0.8"
F Number = F2.84
Exposure Program = Normal program
ISO Speed Ratings = 100
Exif Version = Version 2.2
Date Time Original = 2009-01-11 19:39:15
Date Time Digitized = 2009-01-11 19:39:15
Components Configuration = YCbcr
Compressed Bits Per Pixel = 3.4055
Shutter Speed Value = 0.31 TV
Aperture Value = 2.97 AV
Exposure Bias Value = ±0EV
Max Aperture Value = F2.84
Metering Mode = MultiSpot
Light Source = Daylight
Flash = Flash did not fire, compulsory flash mode
Focal Length = 7.55mm
Flashpix Version = Version 1.0
Color Space = sRGB
Exif Image Width = 800
Exif Image Height = 600
Interoperability IFD Pointer = Offset: 712
Sensing Method = One-chip color area sensor
File Source = DSC
Scene Type = A directly photographed image
Exposure Mode = Auto exposure
White Balance = Auto white balance
Digital Zoom Ratio = 1x
Sharpness = Normal
[Interoperability]
Interoperability Index = ExifR98
Interoperability Version = Version 1.0
[Thumbnail Info]
Compression = JPEG Compressed (Thumbnail)
X Resolution = 72
Y Resolution = 72
Resolution Unit = inch
JPEG Interchange Format = Offset: 838
JPEG Interchange Format Length = Length: 3894
[Thumbnail]
Thumbnail = 160 x 120




